Embraer and Bombardier beware: Japan plans to allocate JPY40 billion (US$330 million) from next year to subsidize Mitsubishi Heavy Industries' proposed large regional jet, whose Boeing 787-based carbon-fiber construction and new engines could deliver dramatic ad- vances in efficiency.

The Malaysian air force is still pushing for Boeing F/A-18E/F Super Hornet, but if it doesn't get them, it says it could seek more Sukhoi 30MKM fighters instead. The country expects its 16 remaining Su-30MKMs to arrive by the end of the year, joining two that have already been delivered. Chief of the air force Gen. Azizan Ariffin says airborne warning and control aircraft also are on the shopping list, along with combat search and rescue helicopters.

Oasis Hong Kong Airlines Ltd. expects to order Boeing 777s or Airbus A350s as soon as next year for the second phase of its business strategy as a low-cost carrier that offers almost full cabin service on long-haul flights from China's richest city. That second phase will see the Hong Kong airline moving into secondary markets. In the first stage, it is focusing on big, mature routes already served by long-established rivals.